All Forum Posts by: Lucas Pfaff

Awesome @Troy Sheets

 Glad your putting this together and I'll definitely be there!

@Sadio C.

 I'd suggest listening to BP Podcast 109 and consulting an attorney. The podcast brings up some issues to consider regarding the creation of an entity as well as insurance concerns. Good luck and congrats on defining and pursuing your goals! 

I would certainly try to make this meetup if it comes together.

Great meetup/open house! It was great to meet everyone and see the finished product. The attention to detail really shows through and it looks phenomenal. Best of luck finding a buyer asap.

Awesome @Steve Babiak! I haven't read these yet but I appreciate the references. 

One of these days (I'll wait for the weather to get a little better) I really need to drag myself to a DIG meetup and thank you in person.

If it were me...

I'd consider my time, interest, and status of the debts. Then I would work out the financials for the following options:

• Wholesale it as is
• Partner with someone who has boots on the ground and manages the flip
• Partner with someone who has boots on the ground to rehab and then hold
• List the property with a Realtor and try to get retail value

If you are planning to flip it, then I would pay the taxes/liens up front or at least contact the agencies and get (IN WRITING) confirmation that they will not force a sale for x amount of time (I'm not certain this would be possible and seems like too much headache). I'm sure someone else can add clarity to this option.

@John MatthewsThanks for the input. I'm actually negotiating with the seller to work out a hybrid of the options you laid out (no guarantee we come to terms)....discounted purchase price, 0% interest financing, and principal only for 5 years. We'll see if it happens.

I'm curious why you don't think Bella Vista is an A neighborhood and what needs to happen to make the transition? It's always seemed to me that A/B/etc classification is fairly subjective but I'm interested to hear your thoughts.

We should definitely grab a bite soon. I'll reach out and we can work something out.

@Steve Babiak That's disappointing to hear but I'm glad you mentioned it. I've been running every scenario I possibly can to figure out how to avoid transfer taxes in this city. I still can't believe that I would need to pay transfer taxes if I dissolved a 2 member LLC holding company and retained ownership in the 2 members names. I give up...t this point I'm just hoping the Anti-Speculation Tax doesn't come to fruition. Thanks for weighing in!

I'll echo the the comment made by @John Matthews. Great idea with the BP open house. I'll be sure to be there on Saturday and finally meet you in person.

Yo! @Brandon Turner Thanks for weighing in. I haven't run the numbers through the calc yet but I will once I've got them worked up a bit tighter. I'll let you know how it goes. 

Yo - @Ben Leybovich I appreciate the input. This is definitely a scenario where the appreciation play can't be ignored. It's an area that is tied to Philly as a whole...if Philly goes up, this goes up. On a purely cash flow basis what you're saying makes perfect sense.

@Ethan Giller

Thanks for the input. I mostly agree with your sentiment. Having said that, I guess I'm struggling to determine the "value" of the location, the CHANCE of appreciation, and the quality of tenant in the neighborhood.

I believe I can get the 3 properties for $550,000 ($180k/unit). At that price point I'm not far off the $150k/unit and the 1% rule. 

Determining the "value" of the intangibles may convince me this is a valid investment but I also don't want to stretch the value to a point where the purchase is a mistake.

I am convinced at this point that structuring the Seller Financing could make this an attractive deal but I'm not clear on how. Perhaps reducing the monthly debt service with a balloon 5-10years out. 

Looks like my call to BT didn't register so I'll try that again. 

Summoning @Brandon Turner

Also Summoning @BenLeybovich